Aussie Rally Most Overbought Since RBA Was Hiking Rates: Chart

The Australian dollar’s recent rally is looking overstretched as traders await two key events Wednesday in Sydney -- June quarter inflation data in the late morning and then a lunchtime speech on the labor market and monetary policy from central bank Governor Philip Lowe. The currency has climbed to a two-year high of 79.89 U.S. cents, with its relative strength index surging above 70 -- a level some take to indicate a security is due to retreat. The RSI has been above that point for eight straight days, the longest stretch since 2010 -- when the Reserve Bank was tightening rates, whereas policy makers have been sitting at a record-low 1.5 percent after cutting the key rate in 2016.

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